Expectancy Theory
... was developed in 1964 by Victor Harold Vroom, Professor at the Yale School of Management.
The expectancy theory says that motivation depends on a person's belief in the probability that an effort he makes will lead to good performance which will lead to receiving an outcome the person values.
The theory assumes that individuals..
? make conscious choices about which course of action to follow and choose the one that maximizes their pleasure and minimizes pain
? have different needs and value the outcomes differently
? choose between alternative actions based on the likelihood of an action resulting in the outcome they value
The main components of the theory
? Expectancy/ subjective probability
an individual's estimate and confidence whether a certain level of effort (E) will produce a certain level of performance (P)
E?P
? Instrumentality
is an individual's perception that its performance (P) will lead to desired outcome (O)
P?O
? Valance (V)
is the value the individual places on the outcome
F = (E?P) x (P?O) x V
? Management has to...
? discover what employees appreciate (Valence)
? discover what resources/training/supervision the employees need
? ensure that promises of rewards are fulfilled and people are aware of that
Example: Student X
Desired outcome: passing the final exams and thereby getting his school leaving certif ...